Summary:

As part of the deal, Roxio bought a legal digital music distribution infrastructure and catalog rights with all five major music labels for…

As part of the deal, Roxio bought a legal digital music distribution infrastructure and catalog rights with all five major music labels for $12.5 million cash and about 3.9 million shares. The $39.5 million purchase price excluded about $1 million in transaction costs.

Roxio Chief Financial Officer Elliot Carpenter said in the statement that the company expected to spend about $20 million for the relaunch of Napster. This new business will create negative cash flow until it is widely adopted.

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